Question
Brooks Community Pharmacy purchased a delivery van having the following characteristics: Cost $26,900 Estimated useful life (years) 5 Residual value $3,400 Estimated miles of use
Brooks Community Pharmacy purchased a delivery van having the following characteristics:
| Cost | $26,900 |
| Estimated useful life (years) | 5 |
| Residual value | $3,400 |
| Estimated miles of use during useful life | 235,000 |
| Miles of use during year 1 | 58,750 |
| Miles of use during year 2 | 47,000 |
Assume the pharmacy uses the units-of-activity method of depreciation. Compute accumulated depreciation as of the end of year 2.
| $4,700 | ||
| $10,575 | ||
| $9,400 | ||
| $5,875 |
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Principles Of Accounting Volume 1 Financial Accounting
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
1st Edition
1593995946, 978-1593995942
